Pepe [PEPE] emerged alongside many other widely-used alternative coins as it broke free from a lengthy period of stagnation and sideways trading. Starting from August, this third-largest meme coin faced challenges in surpassing the $0.000009 resistance level decisively.
With a notable 58% upward movement within the last fortnight, alongside a bullish shift in the market structure, PEPE holders are likely encouraged. The dilemma now arises – should they cash in their gains and await the next market move, or persist in holding on in hopes of a sustained uptrend?
PEPE Witnesses Small Price Drop Following Approach to a Three-Month Resistance
On the weekly chart, surpassing $0.00000986 by the end of Sunday’s trading session would lead to a bullish reversal in the weekly structure. The daily structure has been bullish since September 20th.
The defense of the 78.6% Fibonacci level and the advancement towards the highs of June and July provided a positive outlook. However, caution is advised as a pullback from the $0.0000123-$0.000013 range remains plausible. As such, swing traders with existing positions may want to consider securing partial profits.
The CMF indicator at +0.27 indicates the intense buying pressure witnessed in the past two weeks. Moreover, PEPE’s movement above the 50DMA signals a shift towards bullish momentum in the long term.
Overcoming Psychological Resistance
The significance of the $0.00001 rounded figure psychologically cannot be understated. Currently, the meme coin is trading above this mark, with considerable buying pressure hinting at its potential conversion into a support level.
Data from IntoTheBlock highlights the presence of a substantial resistance zone within the $0.000011-$0.000012 range. Many addresses acquired the token at this price point, and some may be inclined to sell following the lack of significant upward movement since June.
Disclaimer: The opinions expressed here do not constitute financial, investment, trading, or any other form of advice; they solely reflect the author’s perspective.